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Smart Shopper Lease Termination Fees and other costs
1038 messages, Last post on Nov 19, 2009 at 9:34 AM
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Nothing wrong with swapalease. Especially, if you are the one taking over the lease.. If you are having yours taken over, you have to make sure that your bank releases you from all liability... if not, I wouldn't do it. Also, the chances of someone wanting to take over your lease with almost 48 months left is virtually nil. They can most likely lease a new one for that amount and for less time. I agree with pjo1966.. Don't roll over any negative equity.. Pull it from savings and start fresh. regards, kyfdx |
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Replying to: pjo1966 (Oct 01, 2004 11:08 am) First: You are not going to "make your money back" by getting a lease with a lower monthly payment. Once the money is gone, it NEVER comes back. Yes, you will have less of an expense going forward, but it never comes back. Second: It seems like you have a history of loosing money on leases. Although I didn't loose any money because I waited until I could get what the payoff was, I also didn't like the lock-in schedule of leases. So now I purchase my vehicles. Why are you considering leasing again? If you take the $4,000 and the $2,000 that you are going to be loosing from your last two leases that's a nice down payment on a vehicle. Why not just purchase your next vehicle then you can sell it any time you want on your own terms?
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Replying to: mfullmer (Oct 01, 2004 1:14 pm) Second: I did not lose any money on my BMW lease. I will not lose any money on this lease in the long run as I stated above. I made a mistake with this lease. I learn from my mistakes. Why am I considering leasing again? I can get more car for the money. I like a new car every couple of years. I drive less than 12,000 miles a year. I tend to buy things that appreciate in value and lease those that depreciate in value. I am self-employed and can get a nice tax break for leasing.
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Replying to: pjo1966 (Oct 01, 2004 1:37 pm) Leasing can be a good deal... but the deal has to be right, and you have to be able to meet the contract terms.. Keep your leases to 39 months or less, and it will limit your exposure.. Learning from your mistakes is good.. Some people never do... Good luck! kyfdx |
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Replying to: pjo1966 (Oct 01, 2004 1:37 pm) Where are you going to get that "difference" between the two lease amount payments to put back into your savings each month? That is going to come from money you earned, which you would have anyway. |
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It's simple math. My new lease will be $200 less than the old one. When I make that car payment the extra $200 goes back into the savings account I borrowed the difference from. In 4 years I will have that money back in the account and I will be driving a car that I don't loathe made by a quality manufacturer. Financially I break even and emotionally I come out ahead.
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Replying to: pjo1966 (Oct 02, 2004 2:34 pm) Do what you need to do to get back on your feet. I suggest foregoing leasing. |
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I am in the 25th month of a 48-month lease on a 2002 Volvo S40 through Volvo Finance. For a variety of reasons (it's a P.O.S. and I want an SUV), I would like to get out of the lease. Vehicle facts: Adjusted capitalized cost - $20,756.00 Residual value per lease - $8,126.40 Present Blue Book value - ~$12,200 Dollar value of remaining payments - $8,307.37 I have spent two days puzzling over the language in the lease agreement to try to figure out what my early termination penalties could be. It defines my "Early Termination Liability" as: the sum of (1) all amounts due and unpaid under the lease, plus (2) (legal yadda yadda which translates to sale costs of $700) plus (3) the amount by which the Adjusted Lease Balance exceeds the wholesale value for an average condition vehicle as quoted in the then-current edition of NADA's AuctionNet... blah. There is then a complicated definition of "Adjusted Lease Balance" which is "the Adjusted Capitalized Cost less the depreciation portion of all Base Monthly Payments due up to that time. The depreciation portions of all Base Monthly Payments are figured by applying a constant rate to a declining earning balance. The constant rate is that rate which causes the Adjusted Capitalized Cost to be reduced to the Residual Value over the Term after crediting the depreciation portions of all the Base Monthly Payments at any time. The earning balance at any given time is (a) the Adjusted Capitalized Cost less (b) one Base Monthly Payment less (c) the depreciation portions of the previously due Base Monthly Payments." and then, the lease tells me that I agree that "I can calculate the Adjusted Lease Balance for any month with a financial calculator programmed to make actuarial balance calculations by using the Adjusted Capitalized Cost, the Residual Value, the lease term, and the Base Monthly Payment and following the directions for finding the outstanding balance." Huh?? I am fairly financially sophisticated, but this makes no sense to me at all. Can someone please help me make sense of this?
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Replying to: sensor (Oct 04, 2004 5:52 pm) regards, kyfdx (all that other crap is in case you default on the lease, or leave the car on their doorstep)
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